THE IMPACT OF ELECTRONIC BANKING IN NIGERIAN

BANKING SYSTEM
(A CASE STUDY OF ZENITH BANK JALINGO PLC)
BY
EARNEST N. JOSEPH
TSU/FAS/EC/10/1024

BEING A PROPPOSAL SUBMITTED TO THE

DEPARTMENT OF ECONOMICS,

FACULTY OF ARTS AND SOCIAL SCIENCES, TARABA STATE

UNIVERSITY, JALINGO, TARABA STATE

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

AWARD OF B.Sc. DEGREEE IN ECONOMICS.

PROJECT SURPERVISOR: MRS SHEMA'U SABO-ADAMU

JULY 2014

TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of the research problem
1.3 Objective of the study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of the study
1.9 Structure of the study
1.10 Definition of terms
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Theoretical framework
2.2.1 Theory of Diffusion of Innovation (DOI)
2.2.2 Unified Theory of Acceptance and Use of Technology (UTAUT)
2.2.3 Technology Acceptance Model (TAM)
2.2.4 Trust, Perceived and Electronic banking
2.2.5 Organisation Reputation
2.3 Central bank of Nigeria guideline on electronic banking in Nigeria

2.4 Electronic banking and organisation performance

2.5 Conceptual framework
2.5.1 Electronic banking and the common banking products
2.6 An overview of electronic banking in Nigeria
2.6.1 Threats of cyber crimes on the Nigerian premises
2.7 Electronic banking profitability and efficiency
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction
3.1 Research Design
3.2 Area of the study
3.3 Population of the study
3.4 sampling techniques
3.5 Sample size
3.6 Sources of Data
3.7 Method of Data collection
3.7.1 Validation of the instrument (Questionnaire)
3.7.2 Reliability of the instrument
3.8 Administration and retrieval of questionnaire
3.9 Method of Data analysis
3.9.1 The qualitative method
3.9.2 The qualitative method
3

3.9.3 Decision rule

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction
4.2 Presentation and Analysis of Data
4.3 Hypothesis testing and interpretation
4.4 Major findings

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Before the advent of modern banking system, banking operation was
manually done which leads to slowdown in settlement of transactions from one
ledger to another which human handles. Counting of money which should have
been done through computers or electronic machine were computed and
counted manually which were not 100% accurate thereby resulting to human
errors. Most banks then, use only one computer in carrying out transactions,
which reduces the nature of banking transactions (Steven, 2002).
Nigeria does not embrace electronic banking early compared to
developed countries of the world. Nigeria adopted electronic banking system in
the early 2000 (Steven, 2002).
The advent of this new 21st century makes available the link to
information access gradually, introducing new challenges in protecting sensitive
information from one person and making it available to others.
Today's economic activities and businesses in an environment, involves
changes so rapidly because of technological improvement, increased in the
demand for banks to serve their customers electronically. Banks have been in a
leading position to prove technologies in their day-to-day dealings or
transactions to improve their products efficiency and services.
The banking industries today operate in a highly competitive and
challenging globe characterised by these changing conditions and highly
unpredictable economic climate. Information and communication technology
(ICT) is at the centre of this global change curve of electronic banking system in
Nigeria.

Steven, (2002) asserted that, they have over the time, been using
electronic and telecommunication networks for delivering a wide range of value
added products and services, managers in banking industry in Nigeria cannot
ignore information systems because they play a critical role in current Banking
system. He pointed out that, the entire cash flow of most fortune banks today in
the world are linked to information system.
Adhering to ICT concepts, techniques, policies and implementation
strategies, banking services has become a subject of basic importance and
concerns to all Banks and indeed a precondition for local and international
competition.
E-banking has played role in improving service delivery standards in the
banking industry. Automated teller machines (ATMs), deposits machine (DM)
and point of sells (POS) now allow consumers' to carry out banking transactions
and businesses beyond the banking hours.
With online banking (e-banking), individuals can check their account
balances using their mobile phones and also their bank statement, making cash
transfer from one account in different bank to the other and also making
payment of assorted goods and services daily from their various point of
businesses without going to the banking centre. These processes is gradually
introducing what is known as cashless policy where customers' no longer pay
for their transactions or purchase with solid hand cash.
For instance, people can now pay or shop for their goods, airline tickets
and pay for initial public offering by transferring the money directly from their
accounts, or pay for services by electronic transfer of credit to the seller's
account using (POS).
E-banking has made banking transactions easier around the world and it
is fast gaining acceptance in Nigeria. Virtually almost all banks in Nigeria have
6

a web presence; this form of banking is referred to as internet banking which is

generally part of electronic banking. The delivery of products by banks on
public domain is an indication of advertisement, which is known as electronic
commerce (e-commerce).
E-commerce is a general term for any type of business or commercial
transactions; it involves the transfer of information across the internet. Ecommerce involves individuals and business organisation exchanging business
ideas and information over electronic media using computers, telephones and
other communication equipments.
E-banking depends on providing customers, partners, and employees with
access to information, in a way that is controlled and secure. Virtually, all
software and hardware developers claim to build secure products, but what
assurance does an e-banking have of a products security? E-banking want a
clear answers to the conflicting security claims they hear from developers or
vendors. How can you be confident about the security built into a product?
Independent security evaluation against internationally established security
criteria provide assurance of vendors security claims, the growth in the
application and acceptance of internet-driven technologies means that delivering
an enhanced service is more complex and problematic with potential costs and
risks.
1.2 Statement of the Research Problem
There is abundant evidence that most businessmen and customers are
complaining for inefficient services by their branch banks.
The banking sector has depend mainly on manual operations of banking
services not fully electronical such as ATMs, cash transfer and balance enquiry
which are not satisfying the customers fully. All banks need to improve in
electronic banking system in order to curtail the issues of queue outside and
7

inside the banking halls. Most recent literature on banking system has
recognised the tremendous performance the banking sector has recorded in
recent times. However, the role of e-banking in the Nigerian banking system has
not been empirically investigated thereby creating a research lacuna in this area.
This study is undertaking to examine the contribution of e-banking in the
Nigerian banking system. Aside the social and institutional factors inhibiting the
process of Nigerian banking system, the bottleneck created by the dearth of
electronic gadgets to the Nigerian banking system constitutes a major setback to
its development. As a result, it is necessary to evaluate the electronic banking in
the Nigerian banking system or sectors.
1.3 Objectives of the Study
The main objective of this research is to examine the impact of e-banking
in Nigerian banking system on how different channels could enhance the
delivery of consumers and retail products, and also how banks choose to
support their e-banking services internally. The specific objectives of this
research are:
i. To evaluate the prospect of e-banking in Zenith bank plc
ii. To evaluate the impact of e-banking in Zenith bank plc
iii. To examine whether e-banking has improved the fortune of Zenith bank plc
iv. To examine whether Zenith bank e-banking guidelines comply with the CBN
e-banking guideline policy
1.4 Research Questions
The research were guided by the following questions
i. How has e-banking impacted on the activities of Zenith bank plc?
ii. Is there any prospect of e-banking in Zenith bank plc?
8

iii. How has e-banking help in improving the fortune of Zenith bank plc?
iv. Does Zenith bank e-banking guideline complies with the CBN e-banking
guideline policy?
1.5 Research Hypotheses
The hypothesis used on this research is in a null form.
i. HO: E-banking does not have any significant impact in Zenith bank plc
ii. HO: E-banking does not have any prospect on Zenith bank plc
iii. HO: E-banking does not enhance the fortune of Zenith bank plc
iv. HO: Zenith bank e-banking guideline does not comply with the CBN ebanking guideline.
1.6 Significance of the Study
E-banking provides many advantages for banks and customer's. This
system has made life much easier and banking activities much faster for both
customers' and the bankers. The following are the importance of e-banking; It
saves time, provides ways for international banking, provides banking
throughout the year 24/7 days from any place have internet access, provides
well-organized

cash

management

for

internet

optimization,

provides

convenience in terms of capital, labour, time and all the resources needed to
make a transaction. It take advantage of integrated banking services, banks that
may compete in new markets can get new customers and grow their market
share and ultimately, it provides some security and privacy to customers, by
using state-of-the-art encryption and security technologies.
With the above stated advantages, this study would enable the banks
executives and indeed the policy makers of the banks and other financial

institutions to be aware of e-banking as a product of e-commerce with a view of

making strategic decisions.
It would also provide a way forward to the factors that are hindering the
implementation or execution of e-banking in Zenith bank; prove the success and
growth associated with implementation of e-banking, highlight the areas of
banking operations that can be enhanced through e-banking and also be an
invaluable tools for students, academics, institutions, corporate managers and
individuals that want to know more about e-banking issues or trends especially
in Nigeria.
1.7 Scope of the Study
In the process of reaching the objective of the study, attention will be
focus on e-banking among other e-commerce implementation. In order to
conduct an empirical investigation into the adoption of e-banking in Nigeria, the
research examined the nature of e-banking operations in Zenith bank plc from
the year 2000 to 2014.
1.8 Limitation of the Study
In view of the technicalities involved, it would be unrealistic to assume
that all necessary facts have been gathered in the process of this study.
Information gathering was limited due to parochial self-interest of the
respondent. In addition, the time allocated for this research is limited and some
school activities were in progress while carrying out the research and couple
with the financial constraints, these are the entire barriers to this research.
1.9 Structure of the Study
The researcher has planned the research in such a way that the first
chapter introduces how it was carried out, the background to the topic of the
study and the problems that propels the researcher to carry out the research.
Also, objectives of the study are being stated, the research questions, hypotheses
10

and significance of the study are being stated. Inclusively, the scope/limitation
and structure of the study and finally, definition of terms
Chapter two basically deals with the literature review of e-banking
services, functions and identifies the benefits of e-banking among other things.
This chapter also analyzes the problems of e-banking and recommendations of
the possible e-banking system solutions.
Chapter three is concerned with the Introduction, Research Design, Area
of the study, Population of the study, sampling techniques, Sample size, Sources
of Data, Method of Data collection, Validation of the instrument
(Questionnaire), Reliability of the instrument, Administration and retrieval of
questionnaire, Method of Data analysis, the qualitative method, the qualitative
method and finally Decision rule. The various methods use in this research to
collect data is stated in the chapter.
Chapter four is more of data presentation, analysis, interpretations and
discussions of findings.
Finally, chapter five contains the summary, conclusion and suggested
recommendations and references.
1.10 Definition of Terms
E-banking: this is the automated delivery of new and traditional banking
products and services directly to customers through personal computer.
Internet banking: This is a product that enables the leverage on the internet
banking system module in-built on the new banking application implemented by
the bank to serve the internet banking needs of the bank's customer's.
Mobile banking: This product offers customers of a bank to access services as
they walk or anywhere they go via their mobile phones. Customers can make
their transactions anywhere such as account balance, transaction enquiries, stop
checks, and other customers' service instructions, balance inquiry, account

11

verification, bill payment, electronic fund transfer, updates and history,

customer service via mobile, transfer between account etc.
Electronic web collection: This enables the bank partner with universities and
higher institutions of learning to handle admission, registration, examination
managements and fess collections, electronic school fees payment, automated
registration, examination and results publication/management.
ATM card: This is an electronic terminal, which give consumers the
opportunity to bank service at any time. To withdraw cash, make deposits or
transfer funds between accounts, a consumer needs an ATM card and a personal
identification number (PIN).
POS: This is a device that allow consumer to pay for retail purchase and
wholesale purchase with a cheque card, a new name for debit card. This card
looks like a credit card but with a significant difference. The money for the
purchase is transferred immediately from your account to the seller or store's
account using POS card.
Check card: This is a new name for debits cards; it can be use instead of cash,
personal checks or credit cards.
Smart card: This is a card embedded with a computer chip, on which financial
health, educational, and security information can be stored and processed.
Payment system: This is a financial system that establishes the means of
transferring cash between suppliers of funds, usually by exchanging debits or
credits between financial institutions.
Western union money transfer (WUMT): This product allowed people with
relatives in Diaspora who may be remitting money home for family up-keep,
project financing, school fees etc.

12

Transaction alert: This is a process when customers carry out debit or credit
transactions on their accounts and the need to keep track of these transactions
prompted the creation of the alert system by the Zenith bank to notify
customers' of these transactions. The alert system also serves as notification
system to reach out to customers' when necessary information need to be
communicated to them.
Electronic recruitment: This is an online recruitment services to all kinds and
categories of clients such as Army, Navy, Police and the paramilitary through
customizable web portals and the use of scratch cards or PINs for a prospective
applicants. Simply buy the scratch cards, visit portal and fill the relevant
information.
Electronic money: Monetary value measured in units stored in electronic form
on an electronic device in the consumer's possession. This electronic value can
be purchased and held on the device until reduced through purchase or transfer.
Electronic Data Interchange (EDI): This is the transfer of information
between organisations in machine-readable form.

13

CHAPTER TWO
REVIEW OF RELATED LITERATURE

2.1 Introduction
Electronic banking system is a conventional banking system which
started in Nigeria in 1952; (Benjamin 2001). Since then, the industry has
witnessed many regulatory and institutional changes. The industry was being
controlled by at most five out of the 89 banks in existence before the
commencement of the merger and acquisition policy by the central bank of
Nigeria (CBN) in the Nigerian economy.
The industry was faced with heavy challenges including the over bearing
impact of fraud and corruption. Part of the moves to resolve these lingering
problems include the banking reforms initiated by the central bank of Nigeria in
2004, which was largely targeted at reducing the number of banks in the
economy and making the emerging banks much stronger and reliable. So far,
the banking consolidation has been a success story with 25 mega banks
emerging after the recapitalization exercise, which ended on 31st December
2005 in the bid to catch up with the global development and improve the quality
of their service delivery.
Nigerian banks' have no doubt invested much on technology; and have
widely adopted electronic and telecommunication networks for delivering a
wide range of value added products and services. They have in the last few
years transformed from manual to automated systems. Unlike before when they
were using information technology networks, thereby increasing the practice of
inter-banking and inter-branch banking transactions or operations.

14

2.2 THEORETICAL FRAMEWORK

There are so many theories on e-banking services and their practices but
little has been done about it consistent application and how to keep customers
familiar to electronic financial transactions. This section provides an overview
of information system adoptions, factors determining customers' acceptance of
electronic banking and introduces the concept of customer loyalty. A
framework relating to essential antecedent and a number of moderating
variables are introduced. Literatures on adoption and acceptance of electronic
banking, diffusion of innovation and technology acceptance model are proven
evidences.
2.2.1 Theory of Diffusion of Innovation (DOI)
The theory of diffusion of innovation is a model developed to predict
factors influencing the adoption of information system (Roger, 1995). Literature
in information technology diffusion emphasises the importance of perceived
relative advantage and improved organisational performers as enablers of
adoption of innovation. The greater the perceived relative advantage, the faster
the adoption. The DOI theory posits that potential adopters evaluate an
innovation based on attributes such as relative advantage, compatibility,
complexity, trial ability and observability. All these attributes were found to be
positively related to its rate of adoption.
Relative advantage (RA): refers to an individuals belief that IB is better
than traditional ways of banking and can be related to diverse economical,
social, convenience and satisfaction dimensions of IB (e.g. convenience in the
form of freedom from time and place constraints, efficient management of
finance, a better overview of banking matters, and the speed of conducting
banking activities). Research has identified RA as a major determinant of a
customers intention to use IB (Tan and Teo, 2000).

15

Compatibility (CO): is an individuals perception that IB is consistent

and congruent with his or her existing understanding, values, needs and past
experiences. It can also be defined as the fit between IB and the social and
technological infrastructure of an individual. IB adoption involves acquiring a
set of complementary technologies: familiarity with computers, Internet
proficiency, and engagement with computer-mediated communications and
transactions. The influence of one technology on the next generation of that
innovation is expected to be positive especially when the relationship between
the two technologies is compatible (Lee, E., Kwon, K., & Schumann, D. 2005).
In other words, willingness to adopt a new technology is affected by a prior
adoption pattern of related technologies and a greater level of compatibility.
This will allow the new technology to be interpreted in a more familiar context.
Customers perception of compatibility with other electronic banking services
(e.g., home banking, ATMs e-payment, and phone banking) and with the IB
service medium (Internet) has been found to be positively related to their
attitude towards IB and its usage (Puschel, J., Mazzon, J., & Hernandez, J.
2010).
Complexity (CP): refers to the degree to which IB is perceived to be
relatively difficult to comprehend and use. Although CP and CO are closely
related, the distinction can be made that CP has more to do with the actual
competence and skill involved in using IB, whereas CO manifests general
perceptions towards IB use. Previous research suggests CP has a negative effect
on the use of IB (Black, N., Lockett, A., Winklhofer, H. &Ennew, C, 2001).
However, in contrast with these findings, Tan and Teo (2000) did not find any
support for the negative influence of CP on intention to adopt IB. Furthermore,
some studies using IDT framework, have replaced CP with the PEOU construct
from the technology acceptance model (Koenig-Lewis et al., 2010; Puschel et
al., 2010).

16

Trial ability (TR): refers to the degree to which an individual perceives

the bank to offer chances for him/her to try e-Banking prior to any decision to
adopt. A limited number of studies have shown that TR is an important factor
for e-Banking adoption as individuals will feel more comfortable with the
technology and are more likely to adopt it if they are offered experimental lowcost or low-risk trial of e-Banking (Black et al., 2001). On the other hand,
Puschel et al., (2010) did not find a relationship between TR and IB adoption.
Observability (OB): is defined as the degree to which an individual can see
the availability of IB to others and can observe others using the service. Rogers
(1995) suggests that the more visible and innovation and its benefits are, the
greater the likelihood of adoption, simply because the gains from adoption will
be more easily recognized. However, most of the studies using IDT framework
have either found OB to be of marginal importance in predicting IB behavior
(Lee et al., 2004) or they have excluded OB noting that IB is mostly used in
private settings and thus observing individuals performing IB is not only
difficult, but also unacceptable (Keonig-Lewis, N., Palmer, A., & Moll, A,
2010; Tan and Teo, 2000).
IDT has been applied to study IB behaviour either explicitly or implicitly,
through its influence and integration into other theories.
However, very few studies on IB diffusion explicitly measures the five
characteristics as defined by Rogers and most suggest that only RA, CO, and
CP are consistently related to IB adoption (Black et al., 2001; Koenig-Lewis et
al., 2010). Black et al., (2001) pointed out that although IDT is a useful starting
point to study IB diffusion, social issues and individual differences need to be
incorporated into this framework to gain a better understanding of the
phenomenon. Furthermore, Rogers did not identify the perceived risk of an
innovation, but subsequently it has been found to be an important factor in
explaining IB diffusion within IDT framework (Black et al., 2001), while the

17

perceived complexity of innovations negatively related to its rate of adoption

(Rogers, 1995).
2.2.2 Unified Theory of Acceptance and Use of Technology (UTAUT)
Venkatesh,V., Morris, M., Davis, G., & Davis, F. (2003) developed the
unified model through reviewing eight models which explain ICT usage,
namely TRA, TAM, the motivational model, TPB, a model combining TAM
and TPB, the model of PC utilization, DOI, and the social cognitive theory. The
purpose of UTAUT is to explain a users intentions to use ICT and the
subsequent user behaviour. The model considers four constructs as direct
determinants of user acceptance and usage behaviour, namely performance
expectancy, effort expectancy, social influence, and facilitating conditions.
There are four key moderating variables: gender, age, experience, and
voluntariness of use. The authors stated that UTAUT provides a tool for
managers to assess the likelihood of success of technology introductions and to
understand the drivers of acceptance in order to design interventions, which
include, e.g., training or marketing. UTAUT focuses on users who may be less
willing to adopt and use new systems.
2.2.3 Technological Acceptance Model (TAM)
User's behaviour or attitudes towards an acceptance of a new information
system are important on successful adoption of the information (Davis, 1989).
The quality and effectiveness of a system can only be validated with its level of
user's needs boost satisfaction with the system and is an indicator of the systems
success (Pikkaranen, T., kari, Pikkarainen., Heikki, K., & Seppo, P. 2004).
To improve the delivery of efficient and effective system by designers
and developers, it is important to study the reasons why people decide to use or
not to use an information system. The theory TAM is an information system
theory that models how users come to accept and use a technology. The TAM,
which was proposed by Davis, F.D., Bagozzi, R.P., and Warshaw P., (1989), is
an extension of TRA and TPB. TAM explained the relationship between beliefs
18

(perceived usefulness and ease of an information system) and user's attitude,

intension and actual usage of the system. The TAM posits that, these two
theoretical constructs; Perceived usefulness (PU) and perceived ease of use
(PEOU) as a fundamental determinants of user's acceptance of an information
system. It also indicated that perceived security and privacy are the main
concerns while using internet banking. Reid and Levy, (2008), Pikkarainen et
al; (2004) and Karjualoto, Heikki; Mattila, Minna; Pento Tapio., (2002) found
that PU and PEOU are the main factors that influence customers' acceptance of
e-banking.
Ayo, C.K., Ekong, O.U., Fatudimu, I.T. and Adebuyi, A.A. (2007)
conducted a survey of e-banking products and services in Nigeria and found
that, all the banks have at least one particular form of electronic service
including e-banking services, internet-banking service and mobile banking.
However, various e-banking systems have been implemented and accepted by
customers', e-payment remains the most widely used to the e-banking solutions
(Adesina & Ayo, 2010).
To improve the investigative power of TAM, several other constructs
have been added to extend it because TAM alone may not sufficiently predict
user's acceptance in a dynamic environment as e-banking. Examples of such
constructs include; perceived risk, perceived security and privacy, perceived
enjoyment, internet connectivity and trust (Adesina & Ayo, 2010; Reid & Levy,
2008; Klopping, 2004). Building on these empirically validated views, the TAM
is suitable for determining e-commerce but may not fully determine the users'
intension to adopt a technology. This study will further propose to examine the
customers perception on electronic banking system in Nigeria based on
perceived trust and organisational reputation.

19

2.2.4 Trust, Perceived and E-banking

Trust is an individual reliance on another party under conditions of
dependence and risk (Curall & Judge, 1995). Risk on the other hand, is a
function of the probability that a hazard will arise and the consequences of the
hazard. Individual trust behaviour depends on the nature of the consequences
(Schneider, 1998). In a high consequence environment such as e-banking, risk
avoidance behaviour may arise since reducing risk takes precedence over cost
savings.
The relationship between trust and risk is made clear according to the
works of Mayer, R., Davis, J., and Shoerman, F. (1995); trust is the worthiness
assume risk, while trust behaviour is assumption of risk. Trust in both the bank
merchants and electronic channels are important given that there are some risks
involve in using electronic channels for financial transactions.
Studies have identified lack of trust as one of the main impediments to
customers' usage of online financial applications (Nong, et al, 2009; Flavian, C.,
Guinaliu, M., & Torres, E. 2006; Lecam &Lin, 2005) also found that risk
toward using the internet as one of the factors influencing intensions to adopt
internet

banking

and

e-banking services. The research findings

of

Vatanasombut, B., Igbaria, M., Stylianona, A.C and Rodgers, W. (2008) and
Kassin, K.T., Salehi, Mahdi and Zhila, (2006) shows that trust does not only
affect the intent to use e-banking. Trust serves as an antecedent to commitment
of customers to e-banking. (Vatanasombut et al, 2008; Casalo, L.V., Flavian, C.
& Ininahu, M. 2007; Lichtenstein et al, 2006; Rexha, N. Kingshett, R.P.J &
Aro, A.S.S. 2003), found out that trust played a key role in continued use of ebanking. Furthermore, trust is also noted, as one of the useful tools in reducing
the perceived risk that consumers feel is present in an online environment
(Pavlou, 2003).

20

2.2.5 Organisation Reputation

All the adoption model like TAM, TPB and TRA were developed for
studying technology adoption in developed countries might be different from
those of developing countries as the challenges are different in various contexts
(Molla & Licker, 2005). Considering Technology-Organisation-Environment
(TOE) framework by Tornatzky, (1990); three factors are important for any
technology or innovation adoption diffusion process; technology context,
organisational context and environmental context.
i. Technology context includes both internal and external technologies
applicable for the firm.
ii. Organisational context includes resources (capital and human), organisational
scope and size.
iii. Environmental context includes both the direct and indirect roles of
competitors, industry associations, and the governments. Following this, Tam
and Teo, (2000) adopted organisation reputation as one of the factors for
determining adoption of internet banking. Their investigation found that
organisation reputation of the bank is most important in choosing an internet
banking. The variety of service offered and familiarity with the bank are also
important criteria. The size of the bank is another consideration.
2.3 Central Bank of Nigeria guideline on E-banking in Nigeria
The central bank of Nigeria (CBN) recognises that electronic banking and
electronics payments services are still at the early stages of development in
Nigeria. Arising from the three major roles of the CBN in the areas of monetary,
financial system stability and payments system oversight, the CBN technical
committee on e-banking has produced a report, which anticipate the likely
impact of the movement towards e-banking and e-payments on the
achievements of CBN's core objectives. Following from the findings and
21

recommendations of the committee, four categories of guidelines have been

developed as follows:
i. Information and Communication Technology (ICT) standard: this is to
address issues relating to technology solutions deployed, and ensure that they
meet the needs of consumers, the economy and international best practice in the
areas of communication, hardware, software and security. These will include
guideline on Technology and security standards, standards for computer
networks and internet, standards on protocols, standards on application and
system software's, standard on delivery channels (like mobile telephone, ATMs,
internet banking, POS device, international card schemes, switches, internet
service providers, electronic transfer funds, standards on security and privacy,
vendors and outsourcing.
ii. Monetary policy, to address issues relating to how increased usage of internet
banking and e-payments delivery channels would affect the achievements of
CBN's monetary policy objectives.
iii. Legal guideline: this is to address issues on banking regulations and
consumers' right protections.
iv. Regulation and supervisory: this is to address issues that, though peculiar to
payments system in general, may be amplified by the use of electronic media.
The guidelines are expected to inform the future conduct of financial
institutions in electronic and e-payments delivery.
2.4 E-banking and organisation performance
Obviously, there is no doubt about the fact that e-banking contributes
significantly to the success, growth and performance of banks in the Nigerian
banking sector. There have been several literatures developed to buttress and
support the role of e-banking and how it affects banking performance in
Nigeria. Some of these literatures will be reviewed in this section.
22

Financial service industries

over time has opened to historic

transformation that can be termed as e-development which is advancing rapidly

in all areas of financial intermediation and financial markets such as e-finance,
e-money, e-banking, e-brokering, e-insurance, e-exchange, and even esupervision. The new information technology (IT) is turning into the most
important factor in the future development of banking, influencing banks'
marketing and business strategies. In recent years, the adoption of e-banking
began to occur quite extensively as a channel of distribution for financial
services due to rapid advances in IT and intensive competitive banking markets
(Mahdi & Mehrdad, 2010; Dube, T., Chitura, T., & Langton, R. 2009). The
driving forces behind the rapid transformation of banks are influential changes
in the economic environment include among others innovations in information
technology, innovations in financial products, liberalization and consolidation
of financial markets, deregulation of financial inter-mediation. These factors
make it complicated to design a bank's strategy, which process is threatened by
unforeseen development and changes in the economic environment and
therefore, strategies must be flexible to adjust to these changes. E-banking is
transforming the banking and financial industry in terms of the nature of core
products/services and the way these are packaged, proposed, delivered and
consumed. It is an invaluable and powerful tool driving development,
supporting growth, promoting innovation and enhancing competitiveness
(Gupta, 2008; Kamel, 2005).
According to Christopher, G.C., Mike, L. and Amy, W. (2006), e-banking
has become an important channel to sell the products and services and is
perceived to be necessity in order to stay profitably and successfully. As was
rightly said by Christopher, e-banking has create so many profits to the Nigeria
banking sector even to the economy development of Nigeria. It has increases
our National Income (NI) in terms of gross domestic product (GDP)
considerably.
23

Mensah, (2010) argued that, the banking industry play a significant and
pivotal role in supporting economic development through efficient financial
services delivery. Nigerian banks have embraced innovation banking
technologies and e-banking services in recent years. If not all, almost have half
of banks have invested remarkably in expanding and improving the information
technology systems and a number of new e-banking services have been
developed. Almost all the strong commercial banks that are operating in Nigeria
have declared e-business as one of the central strategies for the future
development. To certain extend, e-banking acceptance depends heavily on bank
service quality, customer preferences and satisfaction. These banks understand
that the world is fast becoming a global village and customers want to flow with
the trend because the use of e-banking services saves them a lot of time and
strength from visiting brick and mortar bank branches. It makes information and
banking services readily available at their fingertip at any time they require it.
Nothing satisfies them better, and if customers are satisfied and impressed with
services rendered to them ultimately, the performance of the banks in terms of
growth and profitability will most definitely increase.
2.5 CONCEPTUAL FRAMEWORK
The meaning of e-banking varies among researchers partially because ebanking refers to several types of services via which a bank customer can
request information and carry out most retail banking services via computer,
television, internet or mobile phones.
Burr, (1996) describe e-banking as an electronic connection between the
bank and the customer in order to prepare, manage and control financial
transactions. What Burr is saying here in essence is that, e-banking makes every
work or banking services well organise, manageable and controllable for the
easy access of it various customers when carrying out their day-to-day business
transactions while Leow, Hock Bee, (1999) states that, the term personal
24

computer banking, online banking, internet banking, telephone banking or

mobile banking refers to a number of ways in which customers can access their
banks without having to be physically present at the banking hall. Therefore, ebanking covers all these ways of banking business electronically (Mohammed,
2009). Electronic banking is the provision of banking services to the customers
via internet technology (Daniel, 1999).
The advent of internet and what we called e-commerce has created
various avenues for online trading in the whole world today. This has leads
market near to people's residence at a relatively low cost. Obviously, buying of
goods and services has reduces cost, lost of strength in terms of conveying huge
among of money, compared to people visiting the shops themselves to buy
goods and services which would have create room criminal acts.
Adesina and Ayo, (2010) argued that the advent of internet, e-commerce,
communication technology has opened opportunities for many businesses
including the financial institutions. As they right say (Adesina and Ayo), many
people in the society are now employed in the field of information and
communication technology, viz, software developers, hardware, phone repairs',
web designers, internet service providers etc.
Pikkarainen et al, (2004) mentioned two fundamental reasons underlying
online banking development and penetration.
i. First, the bank gets significant cost savings in their operations through ebanking services. It has been proven that online banking channel is the cheapest
delivery channel for banking products once established.
ii. Secondly, that bank have reduced their branch networks and downsized the
number of service staff, which has paved the way to self-service channels. This
has been widely appreciated by various customers who felt that branch banking
took much of their time and efforts.
25

On the other hand, customers enjoy self-service, freedom from time and
place constraints and reduced stress of queuing in the banking premises. In this
sense, time and cost savings as well as freedom from place have been found to
be the main reasons underlying online banking acceptance. It was deduced that
e-banking service delivery are the cheapest, most profitable and wealthiest
delivery channel for banking products (Pikkarainen et al, 2004). However, not
all customers engage in the use of e-banking services. There are multiple
reasons for this;
i. customers need to have an access to the internet in order to utilize some ebanking facilities such as internet and mobile banking facilities.
ii. customers are afraid of security issues (Ezeoha, 2005).
iii. Non-users often complain that online banking is incomprehensiveble,
difficult to use and has no social dimension which means the lack face-to-face
situation at a branch (Karjaluoto, 2001; Mattila et al, 2003). What these authors
are saying is that, when prompted with a difficult situation you cannot ask the
computer your worrying issues, because it has already been programmed.
2.5.1 E-banking and the common banking products
The use of IT in banking operations is called e-banking. Ovia, (2001)
argued that e-banking is a product of e-commerce in the field of banking and
financial services. In what can be described as Business-to-Consumer (B2C)
which includes; domain for balance enquiry, request for cheque books, balance
transfer instruction, account opening and other forms of traditional banking
services. Banks are also offering e-payment services on behalf of their
customers who shop in different e-shops.
i. Telephone and personal computer banking products
This is a facility that enables customers, via telephone calls, find out
about their position with their bankers merely by dialling the telephone numbers
26

given to them by the bank. In addition, the computer on the phone will require
special codes given to the customers as a means of identification of authentic
users before they can receive any information they requested for. This is a
service introduced into the banking balance because of computer telephone
technology being made available (Ovia, 2001). The technology banking has a
universe of possible application limited only by the imagination these areas
include: account balance enquiry, account statement printing, intra banks
account-to-account transfer. Download account transactions etc. Telephone and
personal computer (CP) banking brings the bank to the doorsteps of the
customer, it does not require his customers to come to the bank premises,
interactive voice response because a regular feature of operations, text-tospeech capacity becomes a reality, a uniformed messaging capacity becomes a
permanent feature of the bank.
ii. The card system
This is a unique e-payment type. The smart cards are plastic devices with
embedded integrated circuit being used for settlement of financial obligations.
The power of card lies in their sophistication and acceptability to store and
manipulate data and handle multiple applications on one card securely (Amedu,
2005). Depending on the sophistication, it can be used as a credit card, debit
card and ATM card. While the e-card is gaining popularity in Nigeria. The
smart card was introduced into the Nigerian market to eliminate problems of
carrying huge cash about (Amedu, 2005). It is electronically loaded with cash
value and carried about like credit card and stores information on microchips.
The chips contain 'purse' in which value is held electronically. In addition, it
also contains security programs; these protect transactions between one card
user and the other. It can also be transferred directly to a retailer, merchant or
other outlet to pay for goods and services like cash transaction between
individuals without the needs for banks of the other third parties. In addition,

27

the system does not require central clearing. In addition, the system allows
transfer of one value to the other hence it operates like cash.
iii. The Automated Teller Machine (ATM)
World widely, the use of paper cash still remains the most widely used
and acceptable means of settling financial transactions and obligations.
However, the proportion of cash transactions is increasingly on the decline,
especially in advanced economies (Amedu, 2005). With the advent of electronic
device, the number of people visiting the bank with a hand cash or pocket cash
or even going to the counter for payment or being served has reduced drastically
because there are ATMs in almost every where outside the banks, schools,
markets, streets, and places of work where a customer can go and make his
withdrawal. This withdrawal of cash is been done through cash dispenser
(machine) and the account will be debited instantly and in the case of cash
transfer, the person's account will be credited immediately.
iv. Cheque
A cheque is a paper based payment instrument, which is issued by the
bank to the customers whose usage is still gaining recognition in Nigeria today.
The focus or reason of this instrument is to ameliorate the number of clearing
days and improve on security arrangement in the course of settlement and
collection. For example, here in Nigeria, the CBN has embarked upon clearing
and Nigeria has signified interest and signed path to this project (Johnson,
2005).
2.6 An overview of e-banking in Nigeria
Before 1998, there was just a few dial up email providers in Nigeria, a
couple of internet service providers (ISP) that operate on slow links. For years,
Nigerian telecommunication (NITEL), the parastatal monopoly dominated the
whole NITEL market. From the conveniences involves, bank offer internet
28

services so that customers can embark on banking activities like transactions,

ordering of goods and services, transferring of cash online. Today, most of
Nigerian banks offer online banking services.
E-banking is the area of e-commerce that has developed in Nigeria so far.
For instance, few banks start the idea of ATM across the country just of recent
in 2003. In terms of technology, Nigeria is far lag behind compared to other
countries in providing technological services to its citizens in general.
Adesina and Ayo, (2010) also said that, the adoption of e-banking service
delivery is fast gaining ground in Nigeria. There are different electronics
services that are introduced in Nigeria such as e-cards, POS, Mobile-banking,
Internet-banking etc. Internet banking services are crucial for long-term survival
of banks in the world of e-commerce (Burnham, 1996).
The market for internet banking has been forecast to grow extremely sharply in
the next few years, affecting the competitive advantage enjoyed by traditional
branch banks (Duclax, 1996; Liao, Shao & Chan 1996).
According to Margaret and Thompson, (200), internet banking would
help present a potential low cost

alternative to brick and mortar branch

banking. Nigeria Direct, (2006); Onwuka (2006); as cited in Francis and

Babatunde, (2009) posited that with a population of over 150 million that is
growing at a 3% rate annually, Nigeria has witnessed an increasing demand for
improved service delivery and convenience by consumers.
According to Francis and Babatunde, (2009) as cited in Shittu (2010),
argued that, some banks in Nigeria amongst other facets of the economy, have
taken advantage of the country's ICT infrastructures to improve service to
customers.
E-banking both as a medium of delivery of banking services and as a
strategic tool for business development, has gained wide acceptance
29

internationally and is fast catching up in Nigeria with more and more banks
entering the trend. Nigeria can said to be threshold of a major banking
revolution with net banking having already been unveiled (Ovia, 2001). Of all
the sectors in the economy of Nigeria, banking industry stands out despite the
recession that is being experiencing in Nigerian economy.
E-banking gives everybody access to his or her own personal account
everywhere they are in the world by using computer connection with internet,
and is particularly advantageous to non-residents Nigerians and high net worth
individuals having multiple bank accounts. The growth potential is, therefore,
immense. Further incentives provided by banks would dissuade customers from
visiting physical branches, and thus get hooked to the convenience of armchair
banking (e-banking). About 90% of banks in the country offer other forms of ebanking services like telephone banking, ATM, POS, e-fund transfer etc.
Despite all these, the e-banking is yet to take centre stage in Nigeria. This aspect
of banking is still at the basic information stage (Ovia, 2001). This is so despite
the widely acclaimed benefits of internet banking against the traditional branch
banking practice. Part of the reasons identified for the inability of banks in
Nigeria to take full advantage of this mode of banking includes;
Inadequate operational infrastructure like telecommunication and power,
upon which e-banking generally relied. Due to the inability of the banks to
integrate their operations into the internet development process, internet
banking can be said to have less in the existing banking system in the country.
In addition, the fact that internet usage has been abused by cybercriminals, this makes its window unattractive for domestic banking operations
and legitimates international operations. These crimes are committed using the
banking sites.

30

2.6.1 Threat of cyber crimes on the Nigerian premises

The advance fee fraud, which is popularly known as 419, is one of the
most popularly known cyber crime and yahoo boys' emanated into the Nigeria
online service since in 1980s. This is because of country's increase in the aspect
of ICT. In the beginning, postal letters were used as key channel for committing
these frauds. However, later in the 1990s, such as telephone and fax from the
late 1990s following the introduction of computers and the internet's. This fraud
became prevalently perpetrated through the use of emails and other internet
means (Amedu, 2005). This issue of fraud has basically defeat the key
ingredients of e-banking which includes confidentiality, integrity and
availability.
Several factors are responsible for the online fraud in the Nigerian
banking system or e-banking system in Nigeria these are:
i. Inordinate tolerance for corruption among Nigerian public and private
agencies
ii. Weakness of the existing financial institutions or legislature to make and
enforce relevant laws on cyber-crimes
iii. Quality of graduates in terms of professional and ethical values
iv. Chronic unemployment among graduates is one of the main reason this
crime rate in Nigeria banking sector
v. The widening gap between the few rich and the over populated poor in the
country, mainly caused by the bad governance causes this fraud on the ebanking system in Nigeria. In the main, erosion of good value principles and
corruption constitute the greatest cause of rising cyber-crimes among Nigerian
(Domestic e-payment in Nigeria (Amedu, 2005). This, according to
transparency international is worsening on a daily basis. By facts, several
generations of Nigeria have been raised in this situation of cyber crime. Hence
31

what is seen as a dangerous global crime is socially acclaimed and glamorized

in Nigeria.
The above situation constitutes the environment upon which e-banking
has emerged in Nigeria.
2.7 E-banking profitability and efficiency
Commercial banks assaulted by the pressure of globalisation and
competition from the non-banking sector, use new ways to add value to their
services. The question, what drives performance? Is at the top in understanding
superior performance and hence striving for it. Substantial research efforts have
gone into addressing this question, starting from the strategic level and going
down from the operational details. This is based on the opinion of heads of
retail banks not commercial banks established the linkage between marketing,
operations and organising excellence. This finding led to the formulation of the
science management strategy encapsulated in the trail operation capabilities
service quality-performance (CSQ-P) (Forth & Jackson, 1995). The C-SQ-P
trail is, in turn, a focused view of the science profit chain based on the analysis
of successful service organisation.

32

CHAPTER THREE
RESEARCH METHODOLOGY

3.0 Introduction
This chapter deals with the methods and procedure in carrying out the
study. It describes the techniques and procedures use in conducting the study
and collection of data for the study. It comprises of 3.1 description of the
Research design, 3.2 Area of the study, 3.3 population of the study, 3.4
sampling techniques, 3.5 sampling size, 3.6 sources of data, 3.7 method of data
collection, 3.7.1 validation of the instrument (questionnaire), 3.7.2 reliability of
the instrument, 3.8 administration and retrieval of questionnaire, 3.9 method of
data analysis, 3.9.1 quantitative method, and finally 3.9.2 qualitative method.
3.1 Research design
This is the blueprint of plan, describing the nature and scope of the study
carried out (Ile, 2010). A survey research design will be use for this study.
Survey research is one in which a group of people or items is studied by
collecting and analysing data from only few people considered to be the
representative of the entire population. Survey studies typically employ
questionnaires and interviews to determine the options, attitudes, preferences
and perceptions of persons of interest to the researcher.
3.2 Area of the study
Zenith bank plc Jalingo that is the case study of this research is situated at
28/29, Hamaruwa way, Jalingo Taraba State. The people of the area are
mostly civil servant and few of them are small-scale business owners, while
some engage in farming activities. Various tribes like Mumuye, Kona, Jukun,

33

Ichen, Fulani, Kuteb, Hausa, Igbo and Yoruba with some other minority ethnic
group as well dwell in the area.
3.3 Population of the study
The population of the study covers the entire staffs of Zenith bank plc
Jalingo and some selected customers, which consist of 100 respondents as the
total population. The population selected was design to obtain adequate and
diverse views pertaining the level and impact of e-banking in Nigerian banking
system. The above population figure is distributed below.
DEPARTMENT

NUMBERS OF RESPONDENT

i. Marketing service

ii. Fund Transfer

iii. Administrative

iv. Cash and Teller

20

v. Transport service

12

vi. Customers service

vii. Internal control and Audit

vii. Zenith bank Customers

25

Total

75

Source: field survey, 2014

3.4 Sampling Techniques
This refers to the method used in drawing the samples. A purposive
sampling technique was employed in this research and questionnaire was
administered to the respondents. A purposive sampling technique was used
because the entire population is convenient and manageable for the study. This
selection includes both male and female staff of Zenith bank plc Jalingo with
some few customers.
34

3.5 Sample size

The sample size for this research was randomly selected from the total
population of Zenith bank plc and some few selected customers. The sample
size consists of the entire 50 employees of Zenith bank plc Jalingo and 25
customers. For conducting smooth investigation, the sample size consists of 75
respondents.
3.6 Source of data
This research employed both primary and secondary data in the study.
The primary sources of data is through personal interview and the use of
questionnaire, while the secondary data were collected by the researcher from
CBN e-banking guidelines, annual report of Zenith bank plc, CBN annual report
and some text books.
3.7 Method of data collection
The data for this research was collected using questionnaire and personal
interview. In order to get diverse views of the respondents concerning the
impact of e-banking; two sets of questionnaire were issued out.
One was issued to the customers and the other one to the bank's staff.
Both the questionnaires were divided into two sections; section 'A' and 'B'.
Section A elicits responses on personal data of the respondents while section B
provides answers to the research questions. The questionnaire has a 5-points
likert scale and Yes/No questions as follows:
Strongly Agree (SA)

=5

Agree (A)

=4

Undecided (U)

=3

Disagreed (D)

=2
35

Strongly Disagreed (SD) =1

Yes = 1
No = 2
3.7.1 Validation of the instrument (Questionnaire)
The instrument was subjected to face and content validity. The face and
content validity of the instrument was ascertained by the corrections, which
were effected on the instrument by the project supervisor and two experts from
Zenith bank plc Jalingo. After the experts input, the researcher was forwarded to
the project supervisor who perused it and make final corrections.
3.7.2 Reliability of the instrument
This is the stability, dependability and predictability of the measuring
instruments. To establish the reliability of the instruments, the test-re-test
method was adopted to test the relationship between the dependent and the
independent variables. 35 copies of the questionnaire were distributed to the
selected respondents from different department of the bank and their customers.
The result was analysed using Chi-square statistics with SPSS software.
3.8 Administration and retrieval of questionnaire
The questionnaire was design and administered personally by the
researcher to all the staffs of Zenith bank plc Jalingo and few selected
customers. The questionnaire was distributed; and after a week, it was retrieved
by the researcher.
3.9 Method of Data Analysis
This part of the research study is aimed at enlightening the prospective
user of the research on how the data was collected and classified into various
responses, analysed and finally interpreted. For the sake of simplicity and
36

clarity, the combinations of both quantitative and qualitative methods of data

analysis were employed in this research.
3.9.1 The quantitative method
The quantitative method is express using simple percentages. In this case,
scores under each response mode was counted and converted into figures and
then, the figures were interpreted into percentages under each table.
3.9.2 The qualitative method
The analytical tool that was used in this research was Chi-square and with
the use of SPSS for the analysis. The chi-square was chosen to measure the
degree of relationship between the information gather from the respondents and
the banking operation. This method (chi-square) was also employed because of
its ability to measure the strength and the relationship between the two variables
i.e. dependent and the independent variables, and to know whether a positive or
a negative correlation exists between e-banking and the Zenith bank
performances.
3.9.3 Decision rule
The decision rule guiding this research is base on the conventional setting
that, if Chi-square (X2) calculated is greater than the Chi-square tabulated (X2tab
> X2tab) at 5% level of significance, the null hypothesis may be rejected in
favour of alternative hypothesis, otherwise, it might be accepted.
The decision rule can also be determined using Asymptote significance
(p) value. If the asymptote significance level is greater than the usual threshold
value of 0.05% at certain degree of freedom, there is no any statistical evidence
to reject the null hypothesis. On the other hand, if the asymptote significance
value is less than the usual threshold value of 0.05% at certain degree of
freedom, the null hypothesis might be rejected in favour of the alternative
hypothesis.
37

CHAPTER FOUR
PRESENTATION OF DATA AND ANALYSIS
4.0 Introduction
In this chapter an attempt is made to answer the questions that were
raised in chapter one. It also deals with the presentation of data collected, its
analysis and results derived thereof. The data presentation is centred on 73
respondents.
The questionnaire were categorise into two: one was administered to the
staff of Zenith bank Jalingo plc which consist of 50 questionnaire, after it was
filled by the respondents and collected back, they were screened and sorted out
by the researcher. Out of the 50 questionnaire issued out to the bank, 2 were not
filled correctly and 48 were returned successively.
The second category of the questionnaire was administered to the
customers of Zenith bank plc Jalingo, which consist of 25 questionnaires, all
were filled and return successively without any missing.
This shows that 75 questionnaire were administered. The detail of the
returned questionnaire shows that, out of 75 that were sent out, 73 were
completed and returned, while 1 was not return and the other 1 was rejected by
the researcher because it was not properly filled. Hence, 97% of the respondents
returned their questionnaire.
4.1 Data presentation and Analysis
4.1.1 CUSTOMERS RESPONSES
4.1.2 Sex of the respondent
The researcher was able to meet the respondent and collect data about their
various genders.
38

The table below shows the various Sex of the respondent

Table 4.1 Sex of the respondent
Sex of the Respondents

Valid

Frequency

Percent

Valid Percent

Cumulative
Percent

Male

16

64.0

64.0

64.0

Female

36.0

36.0

100.0

Total

25

100.0

100.0

Source: Field survey, 2014

Table 4.1 shows the number of respondents by sex. The data collected indicated
that 64% of the respondents are Male while 36% are Female, it will be conclude
that the majority of those that answer the customer's questionnaire are Male.
4.1.3 Marital Status of the Respondent
What is the marital status of the respondents?
Table 4.2 Marital status of the Respondents
Frequency

Valid

Percent

Valid Percent

Cumulative
Percent

Married

36.0

36.0

36.0

Single

16

64.0

64.0

100.0

Total

25

100.0

100.0

Source: Field survey, 2014

Table 4.2 shows the marital status of the respondents. 64% of the respondents
are single while 36% are married; this shows that, the majority of the
respondents are single.

39

4.1.4 Qualification of respondents

The researcher was able to meet with the respondents to know of their level of
academic qualification.
The table below shows their academic qualifications.
Table 4.3 Qualification of the Respondents
Academic qualification of the Respondents
Alternatives

Valid

Frequency

Percent

Valid Percent

Cumulative
Percent

NCE

8.0

8.0

8.0

ND

16.0

16.0

24.0

B.Sc

36.0

36.0

60.0

M.Sc

8.0

8.0

68.0

Ph.D

8.0

8.0

76.0

HND

12.0

12.0

88.0

SSCE

12.0

12.0

100.0

Total

25

100.0

100.0

Source: Field survey, 2014

The table 4.3 shows the number of respondents by qualification. The data
collected shows that 8% are NCE holders, M.Sc, Ph.D holders, 12% are HND
and SSCE holders, 16% are National Diploma (ND) holders, while 36% are
B.Sc holders. Therefore, it could be inferred that majority of the Customers that
attained to this questionnaire are B.Sc holders.
4.1.5 Customers Satisfaction
The researcher was able to ask the customers about their satisfaction with E
banking activities.
40

Table 4.4 Customers Satisfactions

The introduction of E-banking has improved customers satisfaction
Frequency Percent

Valid

Valid
Percent

Cumulative
Percent

Strongly
Disagree

4.0

4.0

4.0

Disagree

8.0

8.0

12.0

Ambivalent

4.0

4.0

16.0

Agree

28.0

28.0

44.0

Strongly Agree

14

56.0

56.0

100.0

Total

25

100.0

100.0

Source: Field survey, 2014

On the assessment of customers' satisfaction with the advent of electronic
banking, 14% of the respondents were of the opinion that they strongly agree,
7% agree, 4% were of the ambivalent and strongly disagree opinion, while 8%
were disagree. This shows that majority of the respondents strongly agree that,
the advent of e banking has improved customers satisfactions.
4.1.6 Do you face some problems with E-banking?
Table 4.5 Frequency Distribution
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

12

48.0

48.0

48.0

No

13

52.0

52.0

100.0

100.0

100.0

Total 25
Source: Field survey, 2014

41

The researcher was able to reach the customers and asked them whether they
usually face a problem with e banking.
The table 4.5 above shows that, 52% of the customers says they do not face
problem with e banking while 48% concord that they face problems with e
banking. This shows that majority of the respondents are enjoying the products
of electronic banking.
4.1.7 Service alternatives
The respondents were asked on how to compare the present's electronic banking
services and that of the traditional banking system.
Table 4.6
How can you compare the services provide for you now via E-banking and
that of traditional banking system?

Valid

Frequency

Percent

Valid Percent

Cumulative
Percent

Excellent

28.0

28.0

28.0

Very Good

11

44.0

44.0

72.0

Fair

12.0

12.0

84.0

Poor

12.0

12.0

96.0

Ambivalent

4.0

4.0

100.0

Total

25

100.0

100.0

Source: Field survey, 2014

The above table shows that 44% of the respondents say that the present ebanking is very good as compared with traditional banking system, 28% says
the present service is excellent, 12% of the respondent says the present service
is fair and poor while 4% were of the ambivalent option. The above table shows

42

that, majority of the respondents agree that the electronic banking services are
very good compared to that of traditional banking system.
4.2 BANK RESPONSES
4.2.1 Sex of the respondents
The researcher was able to ask the respondents on their differences in sex.
Frequency

Percent

Valid Percent

Cumulative
Percent

Male

39

81.3

81.3

81.3

Valid Female 9

18.8

18.8

100.0

Total

100.0

100.0

48

Source: Field survey, 2014

From the above table, 81.3% of the respondents are male while 18% are female.
This shows that the majority of the respondents are male.
4.2.2 Marital status of the respondent
The respondents were asked of their marital status and are presented below in a
table.
Table 4.8 Marital status of the respondents
Marital status of the Respondents
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Married

29

60.4

60.4

60.4

Single

19

39.6

39.6

100.0

Total

48

100.0

100.0

43

Source: Field survey, 2014

The above table shows that 60.4% of the respondents are married while only
39.6% of them are single.
4.2.2 Qualification of the Respondents
The researcher was able to meet the respondents to know their level of
qualification. The table below shows their different qualifications.
Table 4.9 Academic qualification of the Respondents
Frequency

Percent Valid Percent

Cumulative
Percent

National

10

20.8

20.8

20.8

B.Sc

22

45.8

45.8

66.7

M.Sc

8.3

8.3

75.0

Ph.D

6.3

6.3

81.3

HND

8.3

8.3

89.6

SSCE

10.4

10.4

100.0

Total

48

100.0

100.0

Diploma

Valid

Source: Field survey, 2014

Table 4.9 shows the number of respondents' qualifications. The data collected
indicated that 54.8% of the respondents are B.Sc holders, 20.8% are diploma
holders, 10.4% are SSCE holders, 8.3% are M.Sc and HND holders while 6.3%
are Ph.D holders. This shows the majority of the bank workers are B.Sc holders.

44

4.2.3 Working Experience

The researcher was able to meet with the different respondents to know their
years of experience in the banking system.
Table 4.10 Years of experience with Zenith bank plc
Respondent years of Experience with Banking system
Frequency Percent

Valid

Cumulative

Percent

Percent

1-5 Years

26

54.2

54.2

54.2

6-10 Years

12

25.0

25.0

79.2

11-15 Years

6.3

6.3

85.4

Valid 16-20 Years

4.2

4.2

89.6

10.4

10.4

100.0

48

100.0

100.0

21 Years and
Above
Total
Source: Field survey, 2014

Table 4.10 shows how long the respondents have been working with the bank.
From the data collected, it could be seen that 54.2% have spent between 1-5
years working with the bank, while 25.0% spent between 6-10 years, 6.3%
spent 11-15 years, 4.2% spent 16-20 years and 10.4% spent 21 years and above.
In view of this fact, it could be deduced from the analysed data in table 4.10 that
54.2% of the respondents have spent appreciable period of 5 years and above
working in the bank.

45

Cadre of the Respondents

Frequency Percent

Senior Credit
Officer
Valid Junior Credit
Officer
Total

Valid

Cumulative

Percent

Percent

29

60.4

60.4

60.4

19

39.6

39.6

100.0

48

100.0

100.0

4.2.4 Cadre of Respondents

Different cadre of the respondents both the junior officers and the senior credit
officers were ascertained and are shown in table 4.11 below
Source: Field survey, 2014
Table 4.11 shows that 60.4% of the respondents are senior credit officer with
the bank while 39.6% of are junior credit officers. Therefore, the bank senior
credit officers are more than the junior ones.

46

4.2.5 Threat to electronic banking

The respondents were asked of the threat involves in e-banking and their
responses were presented below.
Table 4.12 The incidence of threats in Zenith Bank E-banking
system
Frequency

Percent Valid Percent

Cumulative
Percent

High

6.3

6.3

6.3

Low

32

66.7

66.7

72.9

Moderate

13

27.1

27.1

100.0

Total

48

100.0

100.0

Valid

Source: Field survey, 2014

Table 4.12 shows that, 66.7% of the respondents are of the opinion that the
threats in Zenith bank are low, 27.1% says the threat is moderate while 6.3%
agree that the threat are high. This shows that, the majority of the respondents
opined that the threat in the banking system is low.

47

4.2.6 Performance of Zenith bank

Table 4.13 The overall performance of Zenith bank E-banking system
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Excellent

15

31.3

31.3

31.3

Very Good

21

43.8

43.8

75.0

Fair

11

22.9

22.9

97.9

Poor

2.1

2.1

100.0

Total

48

100.0

100.0

Source: Field survey, 2014

Table 4.14 shows that 43.8% are of the view that, the overall performance of
Zenith bank is very good, 31.3% are of the opinion that the performance is
excellent, 22.9% are of the idea that, the performance is fair while 2.1% says
that the performances is poor. Therefore, the very good opinion having the
higher percentage this shows that, zenith bank overall performance is very
good.

48

4.3 TESTING OF HYPOTHESIS

4.3.1 Hypothesis one
Electronic banking does not have any significant impact in Zenith bank plc.
Table 4.14 Chi-square table on the impact of electronic banking
E-banking has impact on Zenith bank transaction
Observed N

Expected N

Residual

Strongly Disagree

9.6

-8.6

Disagreed

9.6

-8.6

Ambivalent

9.6

-8.6

Agreed

11

9.6

1.4

Strongly Agreed

34

9.6

24.4

Total

48

Chi-square test statistics (SPSS output)

E-banking has
impact on
Zenith bank
transaction
85.333a

Chi-Square
Df

Asymp. Sig.

.000
.000b

Sig.
Monte Carlo Sig.

.05% Confidence Interval

Source: Computed from data, 2014

a.

0 cells (.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 9.6.

49

Lower Bound

.000

Upper Bound

.000

b. Based on 48 sampled tables with starting seed 2000000.

From the above table; it can be observed that, the chi-square statistic (X2)
was calculated to be 85.333a at 4 degree of freedom. The asymptote significance
value associated with the data is .000%, which is less than the usual threshold
value of 0.05%. Hence, the null hypothesis might be rejected in favour of the
alternative hypothesis which state that "electronic banking has significant
impact in zenith bank plc" is accepted.
4.3.2 Hypothesis two
E-banking does not have any prospect in Zenith bank plc
Table 4.15 Prospect of electronic banking in Zenith bank plc
Observed N

Expected N

Residual

Agree

20

24.0

-4.0

Strongly Agree

28

24.0

4.0

Total

48

Source: computed from data, 2014

Ch-square test statistics for the prospect of electronic banking
There is the prospects of electronic banking in Zenith bank plc
1.333a

Chi-square
Df

Asymp. Sig

.248

a. 0 cells (0.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 24.0.

From the above table, the chi-square statistics calculated for 1 degree of
freedom is 1.333. Additionally, it indicates that the asymptote significance
value is 0.248% which is greater than usual threshold value of 0.05% at 1
50

degree of freedom (0.248>0.05). This suggests that the null hypothesis might be
rejected in the favour of alternatives hypothesis, which state that "there is the
prospect of electronic banking in Zenith bank plc" is accepted.
4.3.3 Hypothesis Three
E-banking does not enhance the fortune of Zenith bank plc
Table 4.16 E-banking does not enhance the fortune of Zenith bank plc
E-banking enhance the fortune of Zenith bank
Observed N

Expected N

Residual

Ambivalent

16.0

-14.0

Agree

18

16.0

2.0

Strongly Agree

28

16.0

12.0

Total

48

Chi-square test Statistics on how e-banking enhance the fortune of Zenith

bank plc
E-banking enhance the fortune of Zenith
bank
21.500a

Chi-Square
Df

Asymp. Sig.

.000

Source: computation from data, 2014

a. 0 cells (0.0%) have expected frequencies less than 5.
The minimum expected cell frequency is 16.0.

From the above table 4.16, the chi-square calculated is 21.500 at 2 degree of
freedom. Since the asymptote significance level of 0.000% is less than the usual
51

threshold of 0.05% significance level, the null hypothesis might be rejected in

the favour of alternatives hypothesis which state that "E-banking enhances the
fortune of zenith bank plc" is accepted.
4.3.4 Hypothesis Four
Zenith bank e-banking guideline does not comply with the CBN e-banking
guideline.
Table 4.17 Frequency
Zenith bank e-banking guidelines comply with CBN e-banking guideline
Observed N

Expected N

Residual

Ambivalent

16.0

-15.0

Agree

16

16.0

.0

Strongly Agree

31

16.0

15.0

Total

48

Chi-square test Statistics

Zenith bank e-banking guidelines comply
with CBN e-banking guideline

28.125a

Chi-Square
Df

Asymp. Sig.

.000

Source: computation from data, 2014

a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 16.0.

b. Based on 48 sampled tables with starting seed 299883525.

From table 4.17 above, the chi-square calculated is 28.125a at 2 degree of

freedom. The asymptote significance value associated with the data above is
52

.000, which is less than the usual threshold of 0.05%. Hence, there is no any
statistical evidence to accept the null hypothesis; therefore, alternative
hypothesis is accepted which states the zenith bank electronic banking
guidelines comply with CBN electronic banking guidelines.
4.4 Discussion of Findings
From the above analysis, it can be seen that in hypothesis one, respondent
strongly agree that electronic banking has significant impact on the performance
of zenith bank plc. In hypothesis two, it can also be observed that respondents
strongly agree that base on the current trends; there is the prospect of electronic
banking in zenith bank plc. In addition, in hypothesis three, respondents were
also of the opinion that, the advent of electronic banking has enhanced the
fortune of zenith bank plc. Finally, hypothesis four shows that respondents
strongly agree that zenith bank electronic banking guidelines comply with CBN
electronic banking guidelines.

53